Al khaliji Q1 net profit up 8pc

Doha, April 23, 2013

Al Khalij Commercial Bank (al khaliji), one of Qatar's leading banks, said its net profit for the first quarter hit QR131.5 million, up 8 per cent over its financial results for the same quarter last year.

The Qatari lender said the loans and advances for the first quarter of 2013 stood at QR14.1 billion, 20 per cent higher than the same period of the previous year. Deposits too grew 43 per cent compared to first quarter 2012 and were at QR 17.3 billion.

Al khaliji France, the bank's wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE, posted a 53 per cent growth in its profit which hit QR17 million over last year.

The total assets grew by 28 per cent to hit QR34.4 billion compared to QR 26.8 billion by the end of March 2012. The earnings per share stood at QR0.37 by end of the first quarter, 9 per cent higher than the first quarter of 2012.

The bank said the net fee and commission income surged to QR47.3 million, up 82 per cent compared to the same period last year.

Commenting on the results, CEO Rob McCall said, "Al khaliji is starting 2013 with a solid financial performance. We are in line with our new 2013 strategy and these results depict the Bank's sustained positive performance quarter after quarter."

The revenue was generated mainly from the Qatar based conventional banking activities representing 87 per cent. The remaining 13 per cent was generated from Al Khaliji France, its wholly owned subsidiary headquartered in Paris (France) with its four branches in four different emirates in the UAE.

According to McCall, the net operating income rose to QR231 million, up 7 per cent higher than last year.

"The Investment income at QR 25 million is lower than Q1 2012 by 52 per cent. This result demonstrates the efficiency of our new strategy by focusing more on generating income from the conventional business while maintaining a good return on investments," he stated.

"The results for the first quarter reflect al khaliji's board guidance and management’s primary focus to continue to deliver high-quality returns to all our stakeholders," he added.

By the end of March 2013, al Khaliji said its non-performing loans fell 5.8 per cent to QR55.6 million over last year. The NPL ratio improved from end of 2012 and was at 0.39 per cent by end of March 2013.

"The bank is adequately capitalized and well positioned to meet the requirements of future business growth. It also ensures liquidity at all times while creating additional value to shareholders.”-TradeArabia News Service